Chapter 6 Getting Started in Trading Futures 国际期货市场运作(英文 )教学教案.pptVIP

The pit broker will attempt to fill your order three times. In other words, the pit broker will bid or try to buy three times. If it is not filled then, your order will be “killed,” that is, canceled, and you will be told that your order has been “killed.” Fill or Kill (立即执行指令） Spreads 套利 As you know, a spread involves two markets traded at the same time. When a spread order is placed, there are two sides to the order, unless the spread sides (or “legs”) are placed separately. At times you may wish to place a contingency order. One Cancels the Other (OCO) Cancel Replace When you have an existing order that needs to be canceled and replaced with a new order in the same market, you simply advise your broker that you have a “cancel replace” order. Tips for Order Placement Use stop limit orders instead of stop orders. Fill or Kill orders can be used to your advantage in several ways. Use FOK orders to test a market. MIT orders are acceptable but not always efficient. OCO orders, where accepted, are very helpful. Use First Open Only orders when appropriate. Insist on prompt reporting back of order fills. Tips for Order Placement Chapter 6Getting Started in Trading Futures The Role of the Broker Many of the problems that occur between broker and client arise from unrealistic client expectations. How to Find a Good Broker A broker makes money when you close out a position. The more a client trades, the more profit for the broker. Commissions are the lifeblood of the futures market and the brokerage business. The novice. The experienced short-term trader The long-term trader The independent trader Rules for selecting a Broker ● Answer the telephone quickly and take your order promptly and professionally. ● Place your order directly to the trading floor, and not through another party. ● Report order executions to you promptly. ● Execute your orders with a minimum of errors. A Good Broker Should Different brokerage firm